welcome! things you should know about financial aid...•although the 2017-18 fafsa uses 2015 tax...

© 2014 NASFAA Slide 1

Welcome!

Things You Should Know About Financial Aid


Topics We Will Discuss

• The Financial Aid Process

• Categories, types, and sources of financial aid

• Federal Student Aid (FSA) ID

• Free Application for Federal Student Aid (FAFSA)

• Special Circumstances


Financial Aid Process


What is Financial Aid?

Funding provided to students and families to help pay for postsecondary educational expenses. Most financial aid is awarded to help a student and family meet their financial need.


Financial Need

Cost of Attendance

– Expected Family Contribution

= Financial Need


Cost of Attendance

• Direct costs (tuition, room, board, fees)

• Indirect costs (books, supplies, transportation, miscellaneous)

• Varies widely from college to college


Expected Family Contribution (EFC)

• Amount family can reasonably be expected to contribute toward the student’s education for that year.

• Remains constant regardless of college

• Not necessarily what you will pay out of pocket

• Calculated using data from a federal application form (FAFSA) and a federal formula


Categories of Financial Aid

• Need-based—Grants, Subsidized Student Loans, Federal Work Study

• Non-need-based—Merit-based scholarships, Unsubsidized Loans for student and parent


Gift Aid

• Money that does not have to be paid back

• Scholarships: Generally awarded on the basis of merit, skill, or unique characteristic

• Grants: Generally awarded based on financial need


Primary Sources of Gift Aid

• Federal government

• States

• Colleges and universities

• Private sources—foundations, trusts

• Civic organizations, high school and churches

• Employers


Self Help Aid

• Money awarded to students that must be paid back, or requires something in return, such as volunteer hours or a certain number of work hours.

• Includes educational loans and work study programs.

• Sources include the federal government, school, private entities.


Federal Student Aid Programs

GIFT AID• Federal Pell Grant

• Federal Supplemental Educational Opportunity Grant (FSEOG)

SELF HELP AID• Federal Work-Study

• Direct (Federal) Subsidized and Unsubsidized Student Loans

• Federal Perkins Loan

• Direct Parent (PLUS) Loan


Federal Aid Programs


State of Kansas Programs

1. Kansas Comprehensive Grant (available only at 4-year schools in the state)

2. Kansas State Scholarship (top 20-40% of designated state scholar graduates who complete Kansas Scholars Curriculum)

3. Kansas Ethnic Minority Scholarship

4. Kansas Teacher Service Scholarship

5. Kansas Nursing Scholarship

6. Vocational Educational Scholarship (CC’s or Tech Colleges)

7. Kansas National Guard Educational Assistance

8. Kansas Military Service Scholarship (public institutions only)


State of Kansas

• You can apply for State of Kansas Student Aid 1 of 2 ways:

1. Complete the online form at sfa.kansasregents.org OR

2. Print, complete and mail the State of Kansas Student Aid Application.

• There is a $12 processing fee for state scholarships.

• Kansas Comprehensive Grant application is the FAFSA


KBOR Aid Application Page


Federal Student Aid (FSA) ID

Your Electronic Passport to Federal Student Aid online

studentaid.ed.gov/fsaid

• Provides secure access to user information

• Offers self–service capability (name change)

• Use to Sign Federal Student aid forms (FAFSA/Loan MPN’s)

studentaid.ed.gov/fsaid


Creating an FSA ID


FSA ID Tips

• Access your e-mail account before starting to create an FSA ID.

• Create the FSA ID before starting a FAFSA.• Have list of common (challenge) questions available.• Have list of suggestions for “additions” to usernames

Middle Initial or Name Graduation yearLast four digits of phone numberHouse number


FAFSA on the Web (FOTW)

• Website: www.fafsa.gov

• 2017–18 FAFSA on the Web available October 1, 2016, using 2015 tax information

• Colleges may set FAFSA filing deadlines


Early FAFSA Myths

• Although the 2017-18 FAFSA uses 2015 tax information, we will have to update with 2016 tax data after filing.

• We choose which year’s tax information we provide.

• We will get an award letter from the school faster.

• The FAFSA is available in October, but we still have plenty of time to file.

• We can’t file the FAFSA in October because we have not applied to any schools.

• We used 2015 tax information last year for another student and did not receive anything, so it is fruitless to complete a FAFSA for 2017-18.


FAFSA on the Web Features

• Online help available

• Built-in edits to prevent errors

• Skip-logic allows student and/or parent to skip unnecessary questions

• Ability to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data


FAFSA Start to Finish


General Student Information

• Gender/Selective Service registration

• Citizenship status

• Marital status

• High school completion status/degree sought

• Drug convictions

• Level of parents’ school completion


Student Eligibility


Include Up to 10 Colleges


Dependent or Independent


Parent Demographics

• Marital Status

• Name/SSN/DOB (match with SSA, DHS)

• Household Size

• Number in College


IRS Data Retrieval Tool

• While completing FOTW, you may submit real-time request to IRS for tax data.

• IRS will authenticate taxpayer’s identity.

• If match found, IRS sends real-time results in new browser window.

• You must choose whether or not to transfer data to FOTW (strongly recommended).



• Available October 1, 2016 for 2017–18 processing cycle using 2015 tax information. You cannot use 2016 tax information!

• Participation is voluntary, but strongly recommended

• Will reduce documents needed by financial aid office



These fields are pre-filled based on FAFSA responses



• Some people will be unable to use IRS DRT

• Examples include:

– Filed an amended tax return

– No Social Security Number (SSN) was entered

– Student or parent married but filed separately


Additional Financial Information

• Reporting Income Earned from Work

• Federal Benefit Programs (SNAP, Free school lunch, etc.)

• Assets

• Child Support Received/Paid

• Contributions to Tax-Deferred Savings Plans

• Retirement/Pension Distributions


Signatures

• Required

– Student

– One parent (dependent students)

• Format for submitting signatures

– Electronic using FSA ID (strongly recommended)

– Signature page (if unable to obtain FSA ID)


Parent Signature


Frequent FAFSA Errors

• Social Security Numbers transposition

• Divorced/remarried parental information

• Income earned by parents/stepparents

• Tax filing status not matching marital status

• Separating out tax information for divorced parents

• Untaxed income

• Household size

• Number of household members in college

• Investment, business or farm net worth

• Missing signatures


FAFSA on the Web Assistance

• Online help at fafsa.gov (includes online chat with FAFSA experts)

• Federal Student Aid Hotline (1-800-433-3243)

• Your college’s Financial Aid Office

• KASFAA’s FAFSA Completion Website (www.ksfafsa.org)

• Form Your Future (National Completion Project-www.formyourfuture.org)

http://www.ksfafsa.org/


After the FAFSA


Special Circumstances

• Change in employment status

• Unusual medical expenses not covered by insurance

• Change in parent marital status or household size.

• Unusual dependent care expenses

• Student cannot obtain parental information

• Parent(s) attending college


Special Circumstances

• Do not do this on your own!!! You must involve the school’s financial aid office.

• Send written explanation and documentation to the financial aid office at each college.

• College will review and request additional information if necessary.

• Decisions are final and cannot be appealed to U.S. Department of Education.


Questions?


Thank You For Attending

Ottawa University Financial Aid Office

(785) 242-5200 or (800) 755-5200 #4

Gary Bateman, (785) 248-2346

[email protected]

Amy Kessinger, (785) 248-2347

[email protected]

mailto:[email protected]

mailto:[email protected]

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